What are my responsibilities as a buyer using a resale certificate?
You should not use a resale certificate if there is any question whether you will resell the property. If you are purchasing a combination of items and some are for resale while others are not for resale, you must clearly indicate to the vendor which items will be resold and on which the vendor should not collect tax.
You should not use a resale certificate if there is any question whether you will resell the property. If you are purchasing a combination of items where some are for resale and others are taxable (for personal use, for example), you must clearly indicate to the vendor which items are being purchased for resale. There may be times when you are not sure whether the items you are purchasing are for resale or for personal use. In such cases, you should pay sales tax reimbursement or use tax to the supplier. If, at a later date, you resell the item before making use of it, you can take a deduction on the tax return on which you report the sale.
